(fxcue news) - Indian shares look set to open on a positive note Thursday as swaps price in two Fed rate cuts in 2024, with the first one expected to come in September. The focus will remain on Q1 earnings and upcoming Budget. Analysts expect muted earnings due to high base effect. Tata Consultancy Services, India's largest IT services company, is set to deliver its financial performance today and there is potential of a decline in profits and margins. Benchmark indexes Sensex and Nifty dropped around half a percent each on Wednesday as investors locked in some profits and sought cues from the upcoming earnings season. The rupee fell by 2 paise to settle at 83.51 against the dollar. Asian markets were broadly higher this morning on expectations that a U.S. government report due later in the day will show inflation continued to moderate in June. The dollar held steady after declining on Wednesday. Gold inched up on falling yields amid rate cut bets, while oil extended overnight gains following OPEC's strong oil demand forecast. Speaking before Congress for a second day Wednesday, Fed Chair Jerome Powell said the labor market is cooling and the U.S. bank will cut its main rate before inflation reaches its 2 percent goal. U.S. stocks rose sharply overnight as investors braced for key economic data and corporate earnings releases. The S&P 500 rallied 1 percent to close above 5,600 for the first time ever and the tech-heavy Nasdaq Composite surged 1.2 percent to finish higher for the seventh consecutive session as Taiwan Semiconductor Manufacturing easily beat expectations for June sales. The Dow climbed 1.1 percent to end just shy of its own record. European stocks rose for the first time in three days on Wednesday after Powell's comments gave scant clues on rate cuts. The pan European STOXX 600 advanced 0.9 percent. The German DAX and France's CAC 40 both jumped by 0.9 percent while the U.K.'s FTSE 100 added 0.7 percent.